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Last Updated : Jun 12, 2019 07:55 PM IST | Source: Moneycontrol.com

Industrial output at 3.4% in April 2019

The IIP for March has been revised to a growth 0.4 percent, up from a drop 0.1 of percent reported earlier.

Kamalika Ghosh @GhoshKamalika

India’s industrial output grew 3.4 percent year-on-year (YoY) in April, according to the Index of Industrial Production (IIP) data released by the government on June 12.

The Industrial output, or factory output, is the closest approximation for measuring the economic activity in the country's business landscape.

The Indices of Industrial Production for the mining, manufacturing and electricity sectors for April 2019 grew 5.1 percent, 2.8 percent and 6.0 percent as compared to April 2018.

Primary goods production for April stood at 5.2 percent and that of capital goods was at 2.5 percent. Production of consumer durables grew at 2.4 percent and consumer non-durables grew at 5.2 percent for the month of April.

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“On the whole picture is not very encouraging on the industrial production front. India Ratings and Research (Ind-Ra) has been consistently articulating that given the fluctuation in the IIP growth data it is difficult to believe that we are on our way or anywhere near to a broad based and sustainable industrial recovery,” Sunil Kumar Sinha, Director, Public Finance & Principal Economist, India Ratings & Research said.

The IIP for March has been revised to a growth 0.4 percent, up from a drop 0.1 of percent reported earlier.

India's gross domestic product (GDP) grew 5.8 percent in January-March, the official data released on May 31 showed, confirming fears of a slowdown. The growth in GDP was the slowest since 2014-15.

The manufacturing sector grew 3.1 percent in January-March 2019 from 9.5 percent in the same quarter last year. For the whole year, the manufacturing sector stood at 6.9 percent in 2018-19 from 5.9 percent in 2017-18.

The factory output measured by the index of industrial production (IIP) contracted in March 2019, the first time in 21 months. This shows a declining momentum of both investment and consumption. Even core industries productions of steel, electricity, coal and cement are falling or have been stagnant in recent quarters.

Signs of an economic slowdown have been visible since last year, with GDP growing 6.6 percent in October-December 2018. The national income data have reinforced deceleration signs that were emanating from a slew of shop-end data, such as car and consumer goods sales, often seen as proxy indicators to gauge trends in household spending.

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First Published on Jun 12, 2019 05:40 pm
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